Real-time Response to Competitors’ Promotions
Learn how to detect your competition’s promotion immediately
In a perfect world, your competition calls to warn you before they launch a promotion. In reality, that never happens. Monitoring real-time competitor data is the only way to learn of a competitor launched promotion. It doesn’t have to be a full-time job – automate it and receive an alert every time their pricing changes or a new promo is launched.
Use Real-time Tracking Technology to Detect Promotions & Respond Faster
Software that tracks each competitor can give you an edge. Use it to spy on the competition and retaliate with a planned promotion response. Be proactive and develop a plan of action to maintain your position in the market. A poorly executed plan can mean you actually lose more than simply not responding.
Tip – watch for your competition’s behavioral trends regarding promotions. Sometimes, companies launch a new promotion every quarter or every year around the holidays. Watch your competition to see if they follow any patterns, this will give you a crucial advantage in the future.
Lastly, remember, don’t engage in a price war! No one wins; discounting not only reduces profit margin it can erode your product value.
Ideas to get you started on developing your Proactive Promotion Plan:
Provide a Rebate: This is not the same as price cutting! For a service promotion this could look like “sign a 6 month contract and get a month free” for retail this could be “a 5% discount on a purchase over $100”
Show your Strength: You know your USP and why it makes you better than the competition; make sure your customers know too! An example is – adding a web banner stating you offer 24-hour customer service included in every contract, when you know, the competition charges extra for this.
Do you have any other tips for countering competitive promotions? Share your advice with the community in the comments.
How to Automate Promotion Detection
As mentioned above, software, such as the Kompyte platform, can automatically track your competition and alert you each time they launch a promotion. The first step is to identify your top competitors and introduce their key web pages into the platform. If you’ve noticed the competition typically announces their promotions on a particular web page or even social media platform, make sure to set-up an alert to notify you of any changes on these pages. Kompyte automatically gathers page changes and new promotional insight for you, then sends the alerts to you via email or other integrated platform you choose.
How to Calculate the ROI?
Identify the impact of your faster response time to the latest competitor promotions. How did spotting the promotion and responding faster, save your bottom line? Were you able to save your conversion rate and minimize lost revenue? Compare the lost revenue from the competition’s last promotion to this time around, when you spotted their promotion immediately.
Product Marketing Director
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